Q338
Thin trading of municipal bonds in secondary markets is because of
A.
excess of information
B.
lack of information
AnswerC.
frequent information
D.
infrequent information
Answer: Option B
Solution
Answer: Option B
Solution:
Thin trading of municipal bonds in secondary markets is because of lack of information. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.